BACKGROUND INFORMATION ON THE NATIONAL CHILD BENEFIT SYSTEM ANNOUNCED IN THE SPEECH FROM THE THRONE SEPTEMBER 23, 1997 The commitment "Federal, provincial and territorial governments have agreed to address in a co-operative way the problems of low-income families with children. Together we are now building the comprehensive and effective National Child Benefit System.  The Government has already demonstrated its initial commitment to this project by increasing its contribution to the Canada Child Tax Benefit by $850 million a year, with higher payments to families beginning July 1, 1998.  The Government will work with its provincial and territorial partners to establish jointly a common timetable for increasing the federal contribution to the Canada Child Tax Benefit by at least an additional $850 million during the course of this mandate. The Government will also work with the provinces and territories to establish the National Re-Investment Framework to guide the re-allocation of our partners' savings into new services and benefits for low-income families with children." Speech from the Throne, September 23, 1997   Why a National Child Benefit System?   Studies show that children from low-income families experience more learning difficulties and have more emotional and behavioural problems during their lives than children from middle- and upper-income families.  Children from low-income families more often drop out of school, get into trouble with the law, and experience crises such as teenage pregnancy, drug addiction and suicide. Both researchers and the media have reported on growing evidence that early childhood experiences have significant long-term effects.  What happens to children when they are very young shapes their health and well-being, including their capacity for life-long learning and overall success. Governments agree that supporting low-income families to give their children a better start in life is one of the most important investments Canada can make in its future.  It is an investment that reflects Canadian values and priorities.  It is an investment that will also make us a stronger country.  For a number of reasons, working poor families may be financially worse off than parents receiving social assistance.  Their employment income may be less than social assistance income, they may not be eligible for supplementary health care, they may incur work-related expenses (e.g., child care, transportation) and they may be required to pay income taxes and various premiums and contributions.  Governments have also agreed on the need to help working poor families to remain in the work force and assist social assistance families to retain work without losing the crucial supports they need to raise their children. Fulfilling the commitment - the National Child Benefit System   Federal, provincial and territorial governments have agreed to address the problems of low-income families and have collaborated on development of the National Child Benefit (NCB).  The NCB, which will be implemented by July 1998, is a major step forward in improving support to low-income families with children.  The NCB System will have two main elements: increased federal benefits for families with net incomes below $26,000 through the Canada Child Tax Benefit (CCTB), and provincial and territorial re-investments in services and benefits for children in low-income families.   The 1997 federal budget announced $850 million per year in additional federal support for low-income families with children ($600 million per year in new monies for the Canada Child Tax Benefit in addition to the $250 million allocated in the 1996 Budget).  These increases are in addition to the $5.1 billion in federal income support already provided each year to families with children.  Together, the Government of Canada, provincial and territorial governments have also developed a framework for re-investment which will re-direct provincial and territorial funds into complementary programs and services such as daycare, drug and/or dental plans or increased income benefits for Canadian families and their children.  This collaboration will create a truly National Child Benefit System. In the Speech from the Throne, the federal government committed to increase further the Canada Child Tax Benefit by at least an additional $850 million during the course of this mandate.  The Government will work with provincial and territorial governments to establish a common timetable for this increase. For further information on the National Child Benefit System, refer to "The National Child Benefit: Building a Better Future for Canadian Children"   [ Top ] [ Menu | Previous | Français ] © 1998 Minister of Public Works and Government Services Canada